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The Legal Side of Entrepreneurship

YoungUpstarts

Startups need to understand how to manage the seed money they receive from investors and VCs. Investors typically negotiate from a term sheet, which if not handled properly can create problems that can hurt or kill the startup’s chances when they do their Series A round of funding.

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Instead of sticking a fork in the venture market, realize. there is no fork

This is going to be BIG.

This is a company that, according to the article, got term sheets from half of the VCs that expressed interest in the company. The industry has made it very easy for companies to raise seed money through online marketplaces like Angel List, accelorators. Not a bad close rate, I'd say--and a pretty great pay day.

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A Quality Benchmark for Accelerators: The Global Accelerator Network

Feld Thoughts

In addition to these eight criteria, all members follow the established ethos (give before you get; put entrepreneurs first) of accelerators in GAN, including a thorough review of an accelerator’s term sheets and numerous conversations to vet accelerator founders’ intentions and operational practices.

Global 179
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Understanding the Risks of VC Signaling

Both Sides of the Table

Chris Dixon provided some commentary on Twitter that he believes I missed “the most important point about fund size.&# He’s specifically referring to his point of view that entrepreneurs shouldn’t take seed money from “big VC’s&# (he defines them as > $100 million). We took the $500k.

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Entrepreneurshit. The Blog Post on What It’s Really Like.

Both Sides of the Table

Think about it – most entrepreneurs who manage to raise seed money or venture capital usually raise enough money for 12-18 months maximum. But why don’t you just give me the damn term sheet you promised so I can trust you even more. Many times it’s less. Yeah, I trust you. She seems depressed.

Monaco 420
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To Fundraise While You're Not Fundraising or to Not Fundraise While You're Not Fundraising? That is the Question.

This is going to be BIG.

You think you're getting this big fat check compared to the seed money you raised, but they're actually doing something more like dipping their toes in the water. It's less signal than you think.

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VC Seed Funding is Dead, Long Live VC Seed Funding!

Both Sides of the Table

.&# And I think this line of thinking has started to become conventional wisdom as outlined in Chris Dixon’s excellent blog post saying that you need to be careful raising seed money from a large VC fund. I do think you need to be careful with funds that have done 20-30 seeds deals in fairly rapid succession.